Shares of Hindustan Aeronautics Ltd., the state-run defence equipment manufacturer, surged as much as 7% to a record high of ₹4,468.95 after the company’s March quarter results announcement.
HAL delivered an Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) margin of 40% for the March quarter. The company had delivered EBITDA margin of 26% during the same quarter last year.
Revenue for the quarter increased by 18.2% from last year to ₹14,768.7 crore.
EBITDA for the quarter nearly doubled, growing by 81.8% from last year to ₹5,901.1 crore. EBITDA during the year-ago period stood at ₹3,245.8 crore.
Hindustan Aeronautics’ profit went up by 52.2% year-on-year to ₹4,308.7 crore.
For financial year 2024, Hindustan Aeronautics reported revenue of ₹30,380 crore, revised higher from the ₹29,810 crore number it had reported provisionally on April 1 this year.
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During the financial year, HAL received major orders worth more than ₹19,000 crore, along with repair and overhaul contracts of over ₹16,000 crore.
The company signed an export contract with Guyana Defence Forces for the supply of two Hindustan228 aircraft in FY24. Both the aircraft have successfully been supplied in record time within a month for signing the contract.
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Brokerage firm UBS recently wrote in its note that HAL may see a valuation re-rating and increased its price target on the stock to ₹5,200 from ₹3,600 earlier. UBS is projecting HAL’s order book to triple by financial year 2027 and revenue in the manufacturing business to grow by 25% for the same timeframe. The manufacturing business is half of HAL’s overall topline.
Shares of Hindustan Aeronautics are trading at the highest point of the day, up 8% at ₹4,555.95. The stock has extended its gains for 2024 to nearly 60%, while it has nearly tripled in the last 12 months.
